Despite Claims Of Economic Growth, Prices Remain High Across Markets 

As official data paints a picture of economic recovery in Nigeria, the reality on the ground tells a harsher story. In this analysis, ISAAC ASABOR writes on the widening gap between government growth claims and the unbearable cost of living faced by everyday Nigerians. Featuring expert insights, grassroots voices, and a critical look at the World Bank’s endorsement of reforms, the article lays bare the contradiction between economic theory and lived experience in Nigeria’s markets and homes.

 Despite upbeat government pronouncements touting economic growth and stability, the average Nigerian continues to grapple with skyrocketing prices of goods and services across markets. 

In what increasingly appears to be a tale of two economies, one measured in statistics and boardroom figures, and another lived in the trenches of daily survival, Nigerians are questioning the relevance of economic growth that does not translate into affordability or relief. 

Against the backdrop of the foregoing, it is expedient to begin by saying that the National Bureau of Statistics (NBS) reported that Nigeria’s economy grew by 3.13% in the first quarter of 2025. 

On the surface, this appears encouraging, especially after years of sluggish performance, currency devaluation, and macroeconomic turmoil. 

Yet, most Nigerians would tell you the so-called growth is invisible in their daily lives. 

Interestingly, the World Bank has applauded the Nigerian government for embarking on tough economic reforms that are beginning to yield macroeconomic improvements. 

In its June 2025 Nigeria Development Update (NDU), the institution noted that “Nigeria’s reforms have helped restore macroeconomic stability, boost investor confidence, and improve public revenues.” 

According to Shubham Chaudhuri, the former World Bank’s Country Director for Nigeria, said, “The Tinubu administration deserves credit for implementing long-delayed reforms that could lay the foundation for stronger and more inclusive growth. What’s needed now is to protect the poor and vulnerable from the immediate impacts of those reforms.” 

While the World Bank praised the efforts to unify the exchange rate, eliminate fuel subsidies, and rein in fiscal leakages, it also sounded a clear warning: “High inflation, rising unemployment, and increasing poverty remain significant risks.” 

As gathered, inflationary rate may be falling, but prices are not. For instance, the Central Bank of Nigeria (CBN) in July 2025 maintained its monetary policy rate at 27.5%, citing the need to tackle stubborn inflation. 

The headline inflation rate, which slightly dipped from 23.71% in April to 22.22% in June 2025, still remains one of the highest in sub-Saharan Africa. 

More worrying is food inflation, which has remained well above 30% in many regions. 

A market survey in Lagos revealed that a 50kg bag of rice now sells for between N75,000 and N99,000, up from N35,000 in 2023. 

A loaf of bread that cost N600 in 2023 now goes for N1,200 or N1,300, depending on the brand and market location. Not only that, cooking oil, vegetables, poultry, and meat have also seen price hikes of 70–100% in under 12 months. 

“The inflation numbers don’t reflect market realities,” said Mrs. Iyabo Adeoye, a trader in Mile 12 Market. “Prices are doubling every few months, and customers can’t afford to buy. Some are now buying food in teaspoons.” 

Transportation costs have equally surged, following the removal of fuel subsidies in 2023. Fuel now sells between N900 and N1,000 per litre, up from N195 before deregulation. 

With transport costs rising as much as 200%, food prices have followed suit, especially in cities dependent on food transported from distant rural areas. 

While prices soar, incomes remain largely unchanged. Despite the federal government’s recent announcement of a new N70,000 minimum wage, implementation remains patchy, with many employers, public and private, failing to comply. 

“I still earn N45,000 a month, and I have three children to feed,” said Uche Chukwuma, a security guard at Ogba in Lagos. “How do I survive when just transport takes N20,000 monthly? I now skip meals to make ends meet.” 

According to the Nigeria Labour Congress (NLC), even with the revised minimum wage, most Nigerian workers still cannot meet basic needs, and the amount will become inadequate again within months unless inflation is tackled comprehensively. 

A recent report by SBM Intelligence confirmed that the cost of feeding a family of five three square meals daily has more than doubled since mid-2023. 

In their words: “What Nigerians are facing today is not just inflation. It’s a full-blown affordability crisis.” 

Economic experts have consistently pointed out the dissonance between macroeconomic performance and the microeconomic struggle of citizens. 

Dr. Muda Yusuf, former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), puts it succinctly: “We are growing the economy in a way that does not touch the people. 

Growth is being driven by sectors that don’t create mass employment or trickle-down wealth, telecoms, banking, oil, and gas. Agriculture, manufacturing, and SMEs, which touch the average citizen, are still struggling with power, insecurity, and logistics costs.” 

Similarly, Professor Chukwuma Soludo, Governor of Anambra State and a former CBN chief, warned during a recent policy roundtable: 

“No amount of monetary or fiscal tinkering will save Nigeria’s economy unless structural reforms are matched with deep human development policies. If people can’t afford food, transport, rent, and healthcare, then your GDP growth is a paper tiger.” 

As gathered from the grassroots at Oyingbo Market in Lagos, traders, buyers, and transporters share the same frustration.